1. 14% of U.S. drivers are uninsured, increasing costs for insured individuals. 2. Insurance companies face higher expenses due to uninsured motorists. 3. Policyholders paid $16 billion for uninsured motorist coverage collectively. 4. Mercury Insurance emphasizes affordability and safety of having auto insurance. 5. The trend of uninsured drivers may affect overall insurance rate landscapes.
Increased costs due to uninsured drivers can lead to higher premiums, potentially benefiting MCY.
The growing trend of uninsured drivers may translate to premium increases, positively affecting MCY's bottom line.
Immediate financial implications emerge as insurers adjust rates in response to market pressures.
LOS ANGELES, March 27, 2025 /PRNewswire/ -- A greater number of Americans are getting behind the wheel without auto insurance, raising costs for all drivers across the country.
From 2019 to 2022, the percentage of uninsured motorists grew from 11% to 14% according to the Insurance Research Council, which translates to approximately 1 in 7 drivers in the U.S. According to Bankrate, the average cost of full coverage car insurance is roughly $205 per month as of November 2024.
The increasing frequency of uninsured drivers strains insurance companies financially. When insurers are forced to cover the costs of accidents caused by these drivers, expenses increase. The burden of these increased costs is then passed on to the consumer, meaning that responsible, insured drivers have to shoulder the burden.
In recent years, policyholders collectively paid $16 billion for uninsured and underinsured motorist coverage, per Answer Financial.
"The reality is we all bear the burden for motorists who drive without auto insurance and it's tough on both the insurer and insured," said Kevin Quinn, Vice President of Auto Claims for Mercury Insurance. "We understand that affordability is a problem, but driving without insurance not only creates a significant liability for the driver, it also exacerbates the affordability problem for everyone."
There are a number of ways:
"Auto insurance is not just a legal requirement — it's a safety net that protects you, your passengers and others on the road from the unpredictable risks of driving," said Quinn. "If affordability is a concern, there are several discounts and strategies that consumers can take advantage of to help reduce costs."
Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida.
Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.
Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on Twitter or Facebook.
SOURCE Mercury Insurance